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RIO's companys ordinary shares are expected to pay $ 1.3 per share in dividends for 3 years and after which the dividends are expected to
RIO's companys ordinary shares are expected to pay $ 1.3 per share in dividends for 3 years and after which the dividends are expected to grow at 1.6 % annually forever. RIO's shares have a beta of 1.4 . The long-term return of ASX200 is 8.3 % and the market risk premium is 6 %. a.What is the expected return of RIOs shares according to the CAPM? b.What is the implied price per share? a. The expected return of RIOs shares is (round to 2 d.p) b. The implied price per share (round to 2 d.p.)
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